Existing and New Bio Energy Policies Needed and ... · Existing and New Bio Energy Policies Needed and Implementation Target ... (biodiesel, bioethanol, ... Many other biodiesel sources:

Existing and New Bio Energy Policies Needed

and Implementation Target

Ministry of Energy and Mineral Resources of The Republic

of Indonesia

Directorate General of New Renewable Energy and Energy

Conservation

Delivered by: Head of Bioenergy program planning

Kuala Lumpur, 27-30 August 2013

Energy and Mineral Resources for The People’s Welfare 2

Law No. 30 Year 2007 concerning on Energy

Presidential Regulation No. 5 Year 2006 concerning on National Energy Policy

Presidential Instruction No. 1 Year 2006 concerning on Provision and Utilization, of Biofuel as Other

Fuel

Ministry of Energy And Mineral Resources Regulation No. 32 Year 2008

concerning on Provision, Utilization, and Procedures of Commerce of Biofuel as Other Fuel

Priority supply and use of renewable energy, one of them is

bioenergy.

Biofuel target 5% by 2025 from the national energy mix.

Mandatory of biofuel utilization roadmap (biodiesel, bioethanol,

and biooil) in transportation, industry, commercial, and

electricity generation sector,

Instructions related to the Minister, Governor and Mayor to take

action in order to accelerate the provision and utilization of

biofuel;

Ministry of Energy And Mineral Resources Regulation No. 4 Year 2012 and No. 19 Year 2013

Electricity Price (Feed-in Tariff ) for Bioenergi Based Power

Plant (Biomass, Biogas, and Municipal Solid Waste)


i. Provision of bioenergy in the form of final energy can be liquid, gas, solid, and electricity.

ii. Bioenergy in liquid form which is called the Biofuel consisting of biodiesel, ethanol, and pure

vegetable oil that can be used as a substitute for fuel oil.

iii. Bioenergy in the form of gas/biogas that can be used as fuel for stoves and power plants.

iv. Bioenergy in the form of a solid consist of briquettes or pellets.

v. Bioenergy can also be converted into electricity by using biofuels, biogas, and gasification.

Bio-Refinery Distribution

Distribution

Distribution

Integrated

Generator

BIOENERGY CONVERSION INSTALLATION

• Bio-Gassification

• Anaerob Digestion

1. Biodiesel

2. Bioethanol

3. Biooil

Biogas

Bio-Briquettes/Pellet

Electricity

Bio-Briquettes

Bio-Cook Stove


BIOFUEL

Biodiesel: CPO production rate is 28 million ton per year which only a small part is used for

biodiesel. Many other biodiesel sources: Jatropha, Nyamplung, Kemiri Sunan, etc.

Bioethanol: Mollasses production rate is 1,5 million ton; Cassava production rate is 22 million ton,

and many other bioethanol sources: sorghum, corn, etc.


1. BIOENERGY ROADMAP 2015-2025

Type Unit 2015 2020 2025

Biofuel Million kL 2,69 5,80 13,51

Biodiesel Million kL 2,35 4,73 9,52

Bioethanol Million kL 0,20 0,80 3,45

Biooil Million kL 0,13 0,27 0,54

BioAvtur* Million kL 0 0,14 0,16

Biogas Million m3 7,762 28,821 107,012

Biomass MWe 875 2.670 8.149

* Starting with 2%-bioavtur concentration in 2016


2. BIOFUEL USAGE MANDATORY ROADMAP (Based on Ministry of Energy and Mineral Resources Regulation No. 32 Year 2008)

BIODIESEL (Minimum)

Sektor 2008 2009 2010 2015 2020 2025

Transportation, PSO 1% (Existing) 1% 2.5% 5% 10% 20%

Transportation,

Non PSO

1% 3% 7% 10% 20%

Industry 2.5% 2.5% 5% 10% 15% 20%

Electricity Generation 0.1% 0.25% 1% 10% 15% 20%

BIOETHANOL (Minimum)

Sektor 2008 2009 2010 2015 2020 2025

Transportation, PSO 3% (Existing) 1% 3% 5% 10% 15%

Transportation,

Non PSO

5% (Existing) 5% 7% 10% 12% 15%

Industry 5% 7% 10% 12% 15%


1. Biofuel industry has grown in Indonesia. At present, the installed capacity of biofuel industries are 5.6

million KL/year for biodiesel from 25 producer and 416 thousand KL for bioethanol from 8 producer.

Current National Biofuel Production

*) Note: update August 11, 2013


2. Utilization biofuel currently has carried on:

a. Transportation sector (B-7.5),

b. Industrial sector (B-2 in subsector mineral and coal mining industries) and will be extended to

other industrial sub-sectors is gradually

c. Electricity generation sector.

3. In 2013 the target of biofuel utilization in the transportation sector will be increased to B-10.

Current Realization of Biofuel Mandatory

Note: *) Percentage of Biodiesel blended to gasoline is 7.5% start from February 15, 2012; **)update August 11, 2013

BIODIESEL 2009 (KL) 2010 (KL) 2011 (KL) 2012 (KL)*) 2013 (KL)**)

Mandatory 775,941 1,076,051 1,297,000 1,641,000 2,017,000

Realization 119,348 223,041 358,812 669,398 462,297

Percentage 15.38% 20.73% 27.66% 40.79% 22.92%

BIOETHANOL 2009 (KL) 2010 (KL) 2011 (KL) 2012 (KL) 2013 (KL)

Mandatory 215,824 660,980 694,000 968,000 1,167,000

Realization 1,058 - - - -

Percentage 0.49% - - - -


The Government cq. Ministry of Energy and Mineral Resources has high commitment and will

continously to do effort to support the development and utilization of bioenergy, among others:

a. Encouraging upstream side development to secure the supply of bioenergy raw materials. Eg.

Creating dedicated land for bioenergy feedstock.

b. Creating regulation and policy on the upstream side to ensure the availability of raw materials and

land use.

c. Encouraging Ministry of Agriculture to increasing reseach and development for bioenergy crops.

d. Applying sustainability development concept to bioenergy production. Eg. Indonesia Sustainable

Palm Oil (ISPO) and other partnership related to sustainability such as Global Bioenergy

Partnership, and ISO.

1. Feedstock

a. Updating the standar specification for bioenergy production process.

b. Adoption of second generation technology to reduce competition level with food security.

c. Reduced or exempted custom tax for renewable energy technologies.

d. Integrated system to optimize utilization of bioenergy by-products and waste.

e. Initiating technical study for bioavtur specification standard followed with provision of the

specification standard to starting bioavtur program.

f. Initiating technical study for biomass cofiring on power plant.

2. Technology and process


a. Updating the standar specification for bioenergy to guarantee the quality of bioenergy to end user.

b. Updating the pricing regulation of bioenergy product to increase the utilization of bioenergy

(specifically for biofuel to cover blending cost and transportation cost).

c. Coordination with Ministry of Industry to issue regulation and policy that regulate the obligations for

automotive engines manufactured/distributed in Indonesia must use a mix of biofuel and regulation

related to development of automotive engine technology to production of Flex Fuel Vehicle (FFV)

that can take advantage of biofuels up to> 50%.

d. Encouraging utilization of biofuel on Transportation Non PSO, industries, and electricity generation

sector.

e. Capacity biulding and knowledge access for people in rural area.

3. End user

a. Revising the MEMR Regulation 32/2008 by expanding the scope of regulation not only for bioenergy

in liquid form but also in bioenergy in the solid, gas, and electricity. This revision also revise the

target mandatory and expanding the mandatory to electricity generation sector to use bioenergy

solid (pellet) by cofiring method.

b. Issuing and updating the feed-in tariff (regulated purchasing price) for bioenergy based power plant

to attract investation.

c. Considering the aspect of macroeconomic in the formulation of bioenergy policy because bioenergy

industry is a infant industry.

4. Incentives and Mandatory

Energy and Mineral Resources for The People’s Welfare

Black campaign againts CPO from Indonesia and Malaysia

Updating on the amandements EU-renewable Energy directive (RED),

GHG emissions savings up to 60%, it makes Biodiesel from Palm oil, rape

seed and soy bean will be disqualified

In 2014, Netherlands and england will use labelling onto biodiesel from

Indonesia

===========================================================

===

Legal action to WTO on black campaign, labelling or any discrimination on

biofuel trade drom indonesia

On September 2013, there will be an EU meeting to acknowledge ISPO

On domestic, Indonesia will be implementing B-10 in the end of 2013

11


1. As part of national energy policy, the utilization of bioenergy will be continuously

implemented and improved in order to strengthen national energy security as well as

reducing national emission reduction.

2. Development of bioenergy will reduce the use and impor of fossil fuel and give positive

impact to economic condition.

3. Policy and regulation on bioenergy has been available and it will continuously to be

developed to encourage the use of bioenergy.

4. The Government togheter with all stakeholder will continuously support the bioenergy

development.

5. Indonesia will continue to work with other countries and international community to develop

sustainable biofule industry and also global environmental issues.

Go Green Indonesia ! More energy, Less carbon

www.ebtke.esdm.go.id www.energiterbarukan.net www.konservasienergi.net

Thank You

Documents

Existing and New Bio Energy Policies Needed and ... · Existing and New Bio Energy Policies Needed and Implementation Target ... (biodiesel, bioethanol, ... Many other biodiesel sources: